Organization Development and Change Chapter Fifteen Employee Involvement

Organization Development and Change Chapter Fifteen: Employee Involvement Thomas G. Cummings Christopher G. Worley Cummings & Worley, 8 e (c)2005 Thomson/South-Western

Learning Objectives for Chapter Fifteen • To understand the principle characteristics of employee involvement interventions • To understand the three predominant applications of employee involvement Cummings & Worley, 8 e (c)2005 Thomson/South-Western 2

Employee Involvement • Employee involvement seeks to increase members’ input into decisions that affect organization performance and employee well-being. • Employee involvement (EI) is the broad term for diverse approaches to gain greater participation in relevant workplace decisions. Cummings & Worley, 8 e (c)2005 Thomson/South-Western 3

Employee Involvement • Power – Extent to which influence and authority are pushed down into the organization • Information – Extent to which relevant information is shared with members • Knowledge and Skills – Extent to which members have relevant skills and knowledge and opportunities to gain them • Rewards – Extent to which opportunities for internal and external rewards are tied to effectiveness Cummings & Worley, 8 e (c)2005 Thomson/South-Western 4

EI and Productivity Improved Communication and Coordination Employee Involvement Intervention Improved Motivation Improved Productivity Improved Capabilities Cummings & Worley, 8 e (c)2005 Thomson/South-Western 5

Secondary Effects of EI on Productivity Employee Well-being and Satisfaction Employee Involvement Intervention Attraction and Retention Productivity Cummings & Worley, 8 e (c)2005 Thomson/South-Western 6

Employee Involvement Applications Cummings & Worley, 8 e (c)2005 Thomson/South-Western 7

Parallel Structure Application Stages • Define the parallel structure’s purpose and scope • Form a steering committee • Communicate with organization members • Form employee problem-solving groups • Address the problems and issues • Implement and evaluate the changes Cummings & Worley, 8 e (c)2005 Thomson/South-Western 8

High Involvement Organization Features • Flat, lean organization • Extensive training structures programs • Enriched work designs • Advanced reward systems • Open information systems • Participatively designed personnel • Sophisticated selection practices and career systems • Conducive physical layouts Cummings & Worley, 8 e (c)2005 Thomson/South-Western 9

TQM Application Stages • Gain long-term senior management commitment • Train members in quality methods • Start quality improvement projects • Measure progress • Rewarding accomplishment Cummings & Worley, 8 e (c)2005 Thomson/South-Western 10

Deming’s Quality Guidelines • Create a constancy of purpose • Adopt a new philosophy • End lowest cost purchasing practices • Institute leadership • Eliminate empty slogans • Eliminate numerical quotas • Institute on-the-job training • Retrain vigorously • Drive out fear • Break down barriers between departments • Take action to accomplish transformation • Improve processes constantly and forever • Cease dependence on mass inspection • Remove barriers to pride in workmanship Cummings & Worley, 8 e (c)2005 Thomson/South-Western 11

Deming’s Seven Deadly Sins • Lack of constancy of purpose • Emphasizing short-term profits and immediate dividends • Evaluation of performance, merit rating, or annual review • Mobility of top management • Running a company only on visible figures • Excessive medical costs • Excessive costs of warranty Cummings & Worley, 8 e (c)2005 Thomson/South-Western 12